Money Management Tips Every Millennial Should Know
In 2018, Black spending power was valued at $1.2 trillion, showing just how undeniably powerful the Black dollar is.
That same report also states that "African-American consumers are an important population for smart brands that want to grow market share and brand preference…brands can't afford to lose favor or traction with this segment without potential negative impact." With so many corporations looking to Black people and Black culture as a market opportunity - imagine if it was flipped. Imagine how much more powerful the Black dollar could become if we reinvested some of that buying power back into our individual finances and communities. One way to do this is by #bankingblack.
Meet Teri Williams, President and Chief Operations Officer of OneUnited Bank - the largest Black-owned bank in the United States. Through her work at OneUnited, Teri is committed to combating challenges and embracing the opportunities that come with educating and being relatable to people who look like her about the power of #bankingblack. "People start banking at the large banks because that's what they're exposed to," says Teri. "They don't realize there is a whole network of Black banks, credit banks, and community banks that better reflect their values."
Teri spoke to xoNecole about critical money management tips that can give Black millennials a step up when it comes to their financial literacy and building a strong financial base and future.
Check out her tips below!
1. Set up an automatic savings plan.
Though savings can be a bit of a struggle when you're trying to pay bills and other monthly expenses on time, paying yourself first is a MUST! "If the money goes into your pocket first, it's almost impossible to save," says Teri.
Try setting up your paychecks so that a certain amount is automatically deducted and moved into a savings account through direct deposit. "It doesn't matter the amount, it's the idea of taking money out of your paycheck and putting it into a savings account so you don't touch it," Teri explains.
You'll be able to look up a year (or more) from now and be amazed about how much you can spend. Making this process automatic will leave you little room to forget each pay period.
2. Adjust your student loan payments so you can still save.
For many of us paying back student loans is a major financial burden. However, Teri warns, "If you're paying student loans and not saving, you're sacrificing your future for your past."
She urges millennials to find ways to speak to lenders to negotiate payment plans that are consistent with one's current income. Many student loanees don't realize they don't have to pay the bill that's been sent. Speak to lending partners directly to see if there is flexibility in payment amount and payment scheduling. This will help make sure that though you're repaying a significant amount, saving towards your financial future monthly is also possible.
Courtesy of Teri Williams
3. Focus on buying (or investing) in real estate.
For many of us, getting out of the urban and low-income neighborhoods we're from can be seen as a rite of passage or a sign that "we've made it", but Teri thinks otherwise. "We look at our communities and say we want to get out of here, but instead we should be investing."
Gentrification isn't only affecting communities from a physical perspective, but it also affects potential wealth creation for Blacks and Hispanics. In order to fix this, it's important to "not turn your back on the community and run." She explains, "I'm someone who has been in banking in low-to-moderate income communities for the last twenty years. What I'm seeing on the ground is that our communities are being gentrified. We have been thinking about our communities from the past as opposed to the future."
Figure out where the real estate investing opportunities are in your community. "That dilapidated home down the street or that small condo you feel like is too small for your needs is going to be worth a whole lot more in the future." Now is the time to buy, while properties are still somewhat affordable.
This is also where banking at Black or community-oriented institutions is valuable. As a certified community development financial institution, the majority of OneUnited's lending is in low to moderate income Black and Hispanic communities. This is in comparison to other large banking institutions, where only 1-2% of the loans go to Black people. The odds of receiving a loan from a Black-owned bank like OneUnited is much higher. That's why depositing in a bank that looks out for the best interests of the community is crucial.
4. Don’t neglect your credit health.
Having bad credit isn't permanent, so it should be something that you're actively trying to fix and restore to good standing. Though this tip is pretty standard in the financial literacy world, Teri wants millennials to remember just how important an asset it is for one's financial future. If you're looking to rent an apartment, buy a car, or even buy a home - bad credit can significantly impact your ability to. Specifically, OneUnited offers a "How To Rebuild Credit" program that teaches customers safe ways to work on rebuilding their credit score.
If you're looking to use a credit card as part of your credit rebuilding, consider a secured credit card that reports to the major credit bureaus. Beware of prepaid cards with monthly fees that don't report to the credit bureau. Overall, working with a banking institution that offers financial education resources is important if you're in need of credit repair help.
Courtesy of Teri Williams
5. Create your retirement strategy early.
No matter how far away it is, planning for one's retirement future should always be prioritized. If you're working in the traditional corporate 9-5 structure, when choosing a place to work, always ask about the employer's 401k plan and contributions. It's always a plus if an employer contributes or matches contributions. According to Teri, it's basically "free money" and "helps you build retirement funds without money going into your pocket."
For those millennials who work in the "gig economy", which is also known as freelancing, short-term employment, self-employment or any other non-traditional job type - one of the things you're losing beyond health insurance and benefits is an automatic contribution to social security. As social security is an important part of one's retirement plan architecture, making sure you're contributing to your social security fund is critical.
Finding a career you're passionate is also another major key to the health of our retirement financial strategy. "The reality is that most people are going to work longer than they expect," says Teri. "Look for a career where you are paid your value, and would enjoy getting up and doing the work. Long-term, that will allow you to want to stay working longer which will help you with retirement."
Teri's excited about the future of Black banking and the impact Black millenials will have on the industry. "We need to start using our money more purposely. Bank Black. Buy Black. Build Black. Trust each other. Come together…" With confidence, she adds, "We're taught that we as a community are a failure. We're not taught the tremendous accomplishments within our community and contributions we have made to this country.
"We are not going to be defined by our liabilities. We are going to be defined by our assets."
Featured image by Getty Images
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Rana Campbell is a Princeton University graduate, storyteller, content marketing strategist, and the founder and host of Dreams In Drive - a weekly podcast that teaches you how to take your dreams from PARK to DRIVE. She loves teaching others how to use their life stories to inspire action within oneself and others. Connect with her on Instagram @rainshineluv or @dreamsindrive.
ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
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How A Stay At Switzerland's Luxurious 7132 Hotel Reminded Me To Live The Life I Deserve
Sometimes, as women—especially as single Black women—we simply need to be reminded that we are deserving of living a life we dream of. Even if that means creating it for ourselves. I recently set out on a weeklong trip to Switzerland, a trip I’ve been wanting to take for years, and near the end of my visit, I had an epiphany.
“DeAnna, this is the life you deserve,” I thought to myself as I took in the gorgeous bathroom in my suite at the famous 7132 Hotel and Thermal Spa. It was one of the most luxurious hotels (and bathrooms) I had ever stayed in—and that’s saying a lot for someone who often travels for work.
To help you better understand why this was such a mental awakening for me, I first need to give a bit of my backstory. I’m in my late thirties. I’m an attorneyand a journalist. I own a home and have traveled the world extensively. Essentially, I’ve done everything in life I set out to do. However, when it comes to dating, I struggle. Not because there is anything wrong with me per se, but because my career and “lifestyle” often create problems in my romantic relationships.
View from my hotel room
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I’ve been told everything from, ‘I can’t continue to date you because you seem to choose your career over wanting to settle down and have kids’ by a man after only the second date to ‘Maybe if you just sat down somewhere for a while, I’d actually wife you’ by someone who has honestly never proven themselves to be the settle down type. And these are only a handful of the things I’ve been told over the years.
It’s been frustrating, to say the least, and there have even been seasons where I purposely dimmed my light in hopes that my career wouldn’t push away potential suitors. I know what you’re thinking, “Girl, why would you even consider that? If they’re for you, it won’t matter what you do.” Hey, don’t judge me, but also, I one hundred percent agree.
My hotel bathroom
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That’s why this recent moment in Switzerland was right on time. When I first walked into the hotel to check in, I was blown away by the surrounding beauty. It was a five-star property with one of the world’s most famous thermal bathhouses. Yet, it was something about seeing that 90% of the hotel’s guests were couples, that forced me to sit back for a bit of introspection—while soaking in the thermal spa, of course.
As I went through the mental conversation, there was a battle of sorts. On one hand, I knew that being able to partake in experiences like the one I was having at that moment was important to me. I knew that, at times I actually love being able to dabble in the finer things—after all, I’ve worked hard to be able to afford them. On the other hand, and sadly, I knew that sometimes being a single Black woman that publicly showcases her “luxurious” habits can intimidate men and even scare them off from pursuing you under the guise of them feeling like they “can’t do anything for you, because you have everything.”
My hotel room
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So, what is a girl to do?
Do I minimize/hide the life and experiences that I have? Do I play down the hard work I’ve put in to get where I am professionally? Or, do I risk being single in exchange for being able to have said life, without backlash?
Luckily, the joy that I felt while being at this property won. There was something about taking a full day to simply pamper myself at the bathhouse and in my in-room steam shower and soaker tub, indulging in cuisine from a 2-star Michelin restaurant and doing all of this while surrounded by an amazing group of Black women that reminded me—this is certainly the life I was meant to live and that I deserve. Even if it means that right now, I’ll just have to provide it for myself until the right partner comes along. And honestly, I’m okay with that.
Restaurant at 7132 hotel
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